Most investors view utilities as a reliable, income-generating asset that exhibit some bond-like characteristics. As interest rates declined, the sector appealed to many income investors for its relatively higher yields.

DVY could see further upside because the Fed may not be able to raise interest rates as much as previously planned this year, which would keep pressure off utilities and consumer staples names. Staples stocks account for 8.7% of DVY’s weight, representing the ETF’s sixth-largest sector allocation.

iShares Select Dividend ETF

Tom Lydon’s clients own shares of DVY.